TIME TO DO YOUR FINANCIAL HOMEWORK
Sometimes, even the best events in life – a birth, new job or dream relocation – require a financial plan. They might necessitate the need for more insurance coverage, a new budget or guidance from a financial advisor. Here are 10 positive events that should inspire you to do some financial planning:
1. THE OPPORTUNITY TO BUY A VACATION HOME
Summer rental homes can represent bliss; a great escape you’ve had every year. Then, the landlord offers a sweet insider price you can’t refuse. Summer homes are often bought as emotions rise at the end of the season. But purchasing a vacation home – especially one that requires rental income to finance – can be a complicated long-term commitment. A financial planner, not a real estate agent, can tell you what to consider.
2. YOU GOT THAT BIG RAISE YOU’VE BEEN COUNTING ON FOR YEARS
Pay raises are typically small and incremental if they come at all, so getting a big raise is cause for celebration. They also mean it’s time to do some planning to determine how much you should be saving for the future, too. It might be time to bump up your retirement savings.
3. WEDDING BELLS ARE RINGING, FINALLY
Couples might be marrying later these days than they used to, so when they finally do tie the knot, combining finances can be even more complicated. Prenups might be a buzzkill, but they can help protect each person’s savings and prevent any misunderstandings. They are especially important if either member of the couple is bringing financial responsibilities like children into the marriage.
4. YOU GOT YOUR DIPLOMA
Graduates might not think they have enough money to talk to a financial planner. But they face key money choices as they start repaying their share of the overall $1 trillion in college debt with “starter” jobs. They could use help prioritizing payments for credit cards and student loans.
Source: U.S. News & World Report